What is the best way to claim college payment s

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April 17, 2020
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TurboTax Deluxe Online

DavidS127

The correct way to claim payments to a college depends on whether the person getting the education is a dependent of another person.

If the student is eligible to be a dependent of another person, that person (not the student) claims the educations deductions on their tax return. In that situation, the only things reported on the student's tax return for education are taxable income for scholarships that exceed the qualified education expenses, and student loan interest paid.

If the student is not eligible to be a dependent of another person, the student claims the education deductions on their own tax return.

In either case, click the "magnifying glass Search" icon on the top row, enter "1099t" in the search window and press return or enter, and then click on the "Jump to 1099t" link to begin entering your education information. TurboTax will then guide you to the best options for your education tax benefits.

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Hal_Al

Employee

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants. It is usually best if the parent claims that credit.

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

See https://www.irs.gov/Individuals/AOTC